Global Lithium attracts Mineral Resources in capital raising

The capital raising, which was strongly supported by global institutions, includes the introduction of cornerstone shareholder Mineral Resources Ltd, committing to invest AUS$13.6 million for a 5.0% interest in the company (post completion of the capital raising).

The capital raising was conducted at AUS$1.35 per share representing a 10.8% discount to the 15-day Global Lithium VWAP and comprises:

• A AUS$13.6 million placement via the issue of 10.1 million new shares to new cornerstone shareholder Mineral Resources Ltd.
• A AUS$11.3 million placement via the issue of approximately 8.3 million new shares to institutional and sophisticated investors.
• A AUS$4.3 million placement via the issue of approximately 3.2 million new shares to Suzhou TA& A Ultra Clean Technology, the controlling shareholder of Yibin Tianyi Lithium Industry Co Ltd, to maintain their shareholding at 9.9%. Settlement for the Suzhou TA&A Placement is expected to occur on or around mid-April 2022.
• A AUS$0.7 million placement via the issue of 481 482 new shares to all Directors of Global Lithium, subject to the approval of shareholders at a general meeting to be scheduled in May.

All new shares are to be issued under the company’s existing placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A as follows; LR7.1 – approximately 4.8 million shares, LR7.1A – approximately 16.8 million shares. Allotment of these new shares, excepting the Suzhou TA&A Placement, is anticipated to be Monday 21 March 2022.

Argonaut and Euroz Hartleys acted as Joint Lead Managers for the capital raising.

Global Lithium Non-Executive Chair, Warrick Hazeldine commented:

“As Global Lithium continues to advance our growth strategy with a significant West Australian lithium portfolio in Tier-1 locations, we are delighted to welcome Mineral Resources as a cornerstone investor in this capital raising. Alongside Suzhou TA&A, who continues to maintain their 9.9% stake, the Board is very excited about the depth of knowledge and lithium industry experience within the company and through its key stakeholders.

“We look forward to developing a long-term working relationship with Mineral Resources given the company’s unrivalled track record in successfully bringing operations into production quickly, processing of hard rock lithium ores and downstream processing.”

Read the article online at: https://www.globalminingreview.com/mining/18032022/global-lithium-attracts-mineral-resources-in-capital-raising/